MGM Resorts plunges after Barry Diller's People Inc. withdraws takeover bid
MGM Resorts (MGM) dropped 11% in after-hours trading after Barry Diller's People Inc. (PPLI) withdrew its takeover offer for the casino owner. Shares of People rose 4%.
"There are lots of ingredients that go into a proposal of this kind on its way to completion," Diller said in a statement on Wednesday. "We didn't feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private at this time."
The news comes after People's (PPLI) disclosed in June that it submitted a non-binding proposal to the board of MGM Resorts (MGM) to acquire all outstanding shares of MGM that it does not already own for $48.30 per share in cash.
Diller said People (PPLI) remained "open to and interested" in the possibility of a strategic transaction with MGM Resorts and "look forward to considering a range of alternatives."
Diller added that People's is "undimmed is our belief in the future of MGM Resorts." The company continues to hold 66.8 million shares representing approximately 27% of MGM Resorts and "have total confidence in both the management and the company's prospects."
MGM Resorts (MGM) confirmed that People (PPLI) withdrew its offer.
"The Board remains excited to continue to lead MGM Resorts as a standalone company," Paul Salem, chairman of the MGM board, said in a statement. "Our leading position in Las Vegas, our best-in-class regional properties, and BetMGM's continued momentum highlight the value we bring to our shareholders."
"There are lots of ingredients that go into a proposal of this kind on its way to completion," Diller said in a statement on Wednesday. "We didn't feel the mix was coming together in the way we had hoped and have decided not to pursue taking the company private at this time."
The news comes after People's (PPLI) disclosed in June that it submitted a non-binding proposal to the board of MGM Resorts (MGM) to acquire all outstanding shares of MGM that it does not already own for $48.30 per share in cash.
Diller said People (PPLI) remained "open to and interested" in the possibility of a strategic transaction with MGM Resorts and "look forward to considering a range of alternatives."
Diller added that People's is "undimmed is our belief in the future of MGM Resorts." The company continues to hold 66.8 million shares representing approximately 27% of MGM Resorts and "have total confidence in both the management and the company's prospects."
MGM Resorts (MGM) confirmed that People (PPLI) withdrew its offer.
"The Board remains excited to continue to lead MGM Resorts as a standalone company," Paul Salem, chairman of the MGM board, said in a statement. "Our leading position in Las Vegas, our best-in-class regional properties, and BetMGM's continued momentum highlight the value we bring to our shareholders."